Annuities in Chester, SC
Annuities can play a role in long-term financial strategies, especially for individuals seeking predictable income during retirement. While every type of annuity may not be suitable for everyone, many products can offer valuable options for those looking to manage longevity risk and diversify their retirement portfolio.
What Are Annuities?
An annuity is a financial product that may provide income over time, typically purchased through an insurance company. Individuals can invest a lump sum or make periodic payments, and in return, they may receive regular disbursements either immediately or at a future date. These payments can last for a set period or for the remainder of the annuitant’s life, depending on the contract terms.
Annuities can be used to supplement other retirement income sources, such as Social Security or pensions. However, they often come with fees, surrender charges and other conditions that should be carefully reviewed before committing.
What Are the Different Types?
There are several types of annuities, each with distinct features that may align with different financial goals and risk tolerances. Consider the following:
- Fixed annuities can offer guaranteed payments and a fixed interest rate, providing stability.
- Variable annuities’ accruals may fluctuate based on the performance of underlying investments, offering attractive growth potential but with added risk.
- Indexed annuities can provide returns tied to a market index, such as the S&P 500, with limits on gains and losses.
- Immediate annuities can begin paying out shortly after a lump-sum investment and are often used by retirees seeking to establish an income stream quickly.
- Deferred annuities can accumulate value over time and begin payments at a later date, often enabling long-term growth.
How to Get Annuities Near Me
Choosing an annuity may depend on individual financial needs, retirement plans, and comfort with market risk. Consulting a qualified professional, such as those at The Wyatt Agency, can help clarify whether an annuity fits within a broader strategy. Contact one of our team members today to get started.